© A publication of the School of Agriculture Technology, The Federal University of Technology, Akure, Nigeria.
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Applied Tropical Agriculture
Socio-Economic Contributions of Cottage Industries to Rural Livelihood in Nigeria
Adeoye, I.A.* and Bhadmus, H.B.
Department of Forest Resources Management, University of Ibadan, Nigeria. *Corresponding author: Email:
[email protected]
ABSTRACT
The importance of cottage industries to growth in national economies and the world at large cannot be overemphasized, as they
are in most cases considered as one of many panaceas to poverty alleviation with respect to substantial growth evidently in
most countries, perhaps because they do not require large premises, huge machines and great investment and are not labour
intensive. However, most rural communities in Nigeria lack essential amenities such as electricity, pipe born water, good road
networks, access to good hospitals, etc., which could partly be responsible for their socio-economic retrogression in
comparison to urban communities. It takes a lot of economic considerations to set up large industries, regrettably large
industries in Nigeria are located where the necessary infrastructure already exists with less consideration to rural
development. Contrary to this, cottage industries can be established even in the most remote areas. While there are other
notable benefits of cottage industries as it ensures a more equitable distribution of national income; enhance balanced regional
industrial development; act as a nursery for entrepreneurship and facilitate mobilization of local resources and skills which
might otherwise remain underutilized. Cottage industry does not only increase income of the rural households but also reduce
unemployment and thus raise the standard of living and socio-economic status of rural dwellers. This paper reviews the socioeconomic contributions of cottage industries to rural livelihood in Nigeria with a view to draw lessons from the potentials of
cottage industries in addressing problems of poverty and unemployment in rural communities in Nigeria and promoting cottage
industries for sustainable livelihood and rural development.
Key Words: Rural communities, Socio-economic contribution, Cottage industries, Poverty alleviation, Unemployment.
Eradication. Most notable International organizations such as
Food and Agricultural Organization (FAO), International
Fund for Agricultural Development (IFAD), United Nation
Development Project (UNDP), United Nation Educational
Scientific and Cultural Organization (UNESCO), World
Health Organization (WHO) and the World Bank have also
come out forcefully to address the issue of poverty (Gusau,
1998).
INTRODUCTION
Cottage industries are carried on in the home as a part-time
occupation primarily by members of one family using human
or animal power. Cottage industries play a very vital role in
the country's economy despite the phenomenal growth in the
large-scale sector. In fact, the small-scale sector is playing a
vital role in the growth of national economies the world over
and is considered to be the engine of growth in most countries
(Ogechukwu, 2006). Cottage industries are of special
importance because they can be carried on with the help of
the members of the family. They do not require large
premises, huge machines and great investment. They are
labour intensive. The greatest advantage of such industries is
that even the women and the old in the family can usefully
utilize their leisure. They not only increase the income of the
family but also reduce unemployment and thus raise the
standard of living of the dweller of the rural area (Breman and
Kessler 1995).
The rural economy is not based solely on agriculture but
rather on a diverse array of activities and enterprises. Much
recent thinking on this subject is based on the concept of
„livelihood diversification as a survival strategy of rural
households in developing countries‟ (Ellis, 1999). Farming
remains important but rural people are looking for diverse
opportunities to increase and stabilize their incomes. The
notion of livelihood diversity is based on a framework that
considers the activities of the rural poor as being determined
by their portfolio of assets, including social, human, financial,
natural and physical capital (Ellis, 1998). Activities and rural
livelihood therefore reflect farmers‟ assets and are further
influenced by the institutions that they interact with and
broader economic trends such as market prices and shocks
such as drought.
Cottage industries have great potential to solve the problem
of unemployment and also to help in the equitable
distribution of wealth. Poverty is one of the most deplorable
disabilities that can afflict a person or a nation. Unfortunately,
poverty seems to be increasing in the developing countries,
especially countries of the Sub-Saharan Africa, Nigeria
inclusive. Mankind as a whole has been alarmed by this
phenomenon of growing poverty. The issue of poverty has
become so important that it led to a United Nations special
summit in Copenhagen in 1992. The U.N. declared 1996 as
the International Year for the Eradication of Poverty and
1997-2006 as the International Decade for Poverty
CONTRIBUTION OF COTTAGE
INDUSTRIES TO RURAL LIVELIHOOD
It has been envisaged that cottage Industries would play an
important role as producer of consumer goods and absorber of
surplus labour thereby addressing to the problems of poverty
and unemployment which is a common phenomenon in our
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Adeoye, I.A.* and Bhadmus, H.B.
Socio-Economic Contributions of Cottage Industries to Rural Livelihood in Nigeria Page 128-133
rural area. Other advantages of cottage industries are that they
ensure a more equitable distribution of national income,
enhance balanced regional industrial development, act as a
nursery for entrepreneurship and facilitate mobilization of
local resources and skills which might otherwise remain
unutilized (Mahmoud 2004). Promoting cottage industries in
Nigeria will enable rural development thereby improving the
living standard of the low income population living in rural
area on a self-sustaining basis through transforming the social
spatial structure of their productive activities. After many
years of inadequate emphasis on industrialisation, it is now
clear that rural development represents perhaps the only
logical way of stimulating overall development.
industries in our rural area (Olukunle, 2005). Various
Products from cottage industries often have identifying
features such as traditional or artistic deriving from the region
or country of production by craftsmen, working generally on
a cottage industry basis. These products are characterized by
utility, sustainability and environment friendliness blended
with aesthetics appeal and are suitable for everyday use. The
most predominant features of these industries are the
extensive use of individual skill and the interesting design
motifs.
Three Dimensional Woven Bamboo Products
Three dimensional bamboo woven products are handicraft
made of bamboo strips and threads. This product range is
very wide. The products are classified according to their form
and function. This creates opportunities to utilize indigenous
natural resources. A good example is the production of
portable basketry which refers to baskets with a handle. There
are many kinds of portable baskets. Some are made
specifically for carrying flowers, or fruits and vegetables.
They can be made in wide variety of shapes and sizes,
ranging from fancy miniature baskets to large and strong
baskets that can carry a load of up to 100kg (Yair et al 1999).
Evidence abound in the communities of what successes our
great grandparents, made of their respective trading concerns,
yam barns, cottage industries, and the likes. The secret behind
the success of a self-reliant strategy does not lie in any
particular political philosophy, so much as the people‟s
attitude to enterprise and in the right incentive is adequate
enough to make risk worthy businesses a necessity for the
nation (Mahmoud 2004). In a developing and agricultural
country like Nigeria, the importance of cottage industries
cannot be over-emphasised. Even Mahatma Gandhi strongly
recommended the development and expansion of cottage
Plate 1: Basket making
Plate 2: Storage containers
The parts of a basket (Plate 1) are the base, the side walls, and
the rim. A basket may also have a lid, handle, or
embellishments. Most baskets begin with a base. The base
can either be woven with reed or wooden. A wooden base can
come in many shapes to make a wide variety of shapes of
baskets. The 'static' pieces of the work are laid down first. In a
round basket they are referred to as 'spokes'; in other shapes
they are called 'stakes' or 'staves'. Then the 'weavers' are used
to fill in the sides of a basket (Yair et al, 2001).
Aso-Oke is the short form of Aso Ilu Oke also known as AsoOfi, meaning cloth from the up-country. This fibre is woven
from traditional materials in Yoruba land, the second largest
tribe in Nigeria. Cloth weaving Aso-Oke (Plate 3) started
centuries ago amongst the Yoruba‟s but predominantly
amongst the Iseyin‟s (Oyo State), Ede (Osun State) and
Okene (Kogi state). However, popular types of Aso-Oke are
the “Sanyan” (beige with white stripes) and the “Alaari”
(red). Other relatives of Aso-Oke are Kente, the Ghanaian
genre and Akerete, for the Igbo/Calabar women. Moreover,
Aso-Oke is now regarded as popular attire that is considered
trendy in different countries and world regions like Europe,
United State, Brazil and Cuba. This fibre is known to be more
expensive than ordinary cotton materials because of the cost
of input and the techniques involved. That is, Aso-Oke
involves a whole lot of preparation, such as planting of cotton
(Gossypium hirsutum), spinning, sorting, patterning and
weaving (See Plate 3).
Marketing skills are required to sell this product so as to
make profit and thereby improve the livelihood of the rural
area. Marketing skills help rural households to better
understand the marketing environment, infrastructure,
intelligence and marketing risk. Analysis of the implications
of prevailing market environment should facilitate strategic
planning for marketing, to overcome marketing risk and help
them to access highly competitive and supply-demand led
markets for getting remunerative prices of their
produce/products (Platman, 2004).
Firstly, the planting of cotton stage prepares the cottons for
usage in making the threads usable for weaving Aso-Oke. It
is mostly planted during the rainy seasons between the month
of June and July. Spinning is the process of separating the
cotton seed from the wool, and in doing this, a bow-line
Aso Oke (Cotton)
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Adeoye, I.A.* and Bhadmus, H.B.
Socio-Economic Contributions of Cottage Industries to Rural Livelihood in Nigeria Page 128-133
instrument called spindle and “Orun” in Yoruba language is
used. Still on the preparation, Sorting is the process whereby
the weaver separates the dirt from the wool in order to make
the wool fit for use since the cotton often acts like a magnet.
In other words, it easily attracts dirt.
where the rolled cotton is neatly inserted into the striker
through the extenders. Finally, the material is now fit, ready
to be worn (See plate 4) for occasions such as coronations,
festivals, engagements, weddings, naming ceremonies,
burials and other important events. The beauty of the woven
cloth (Aso-Oke) is showcased when it is used as Aso-Ebi (a
group of people e.g. friends, families etc dressed alike).
While the patterning stage is the process of putting designs
and patterns on the Aso-Oke, weaving is the last stage. This is
Plate 3: Weaving Process
Plate 4: Aso oke sales point
culture. Bees gather nectar to make into honey for their own
use as food (See Plate 5), but generally store more than they
need, and this surplus the bee keeper takes away.
HONEY PRODUCTION
Another cottage industry that can fully be explored by rural
dweller is the Honey production sector. The obtaining of
honey from bees is generally the primary object of their
Plate 5: Bee feeding on nectar
Plate 6: Stored Honey
This honey making in the farms is not a hectic job, but it
yields much more money for the rural people. Honey
production does not need extra land, or some machinery. It is
a cottage industry in its own, no food and fodder is needed for
the bees. Nectar is collected from the flowers freely by
nature, through which the bees make honey and many biproducts such as the honey bees‟ wax, and many more.
Honey has distinct germicidal properties and in this respect
greatly differs from milk which is an exceptionally good
breeding-ground for bacteria. Honey is a most valuable food,
which today is not sufficiently appreciated. Its frequent if not
daily use is vitally important (Chambers and Conway, 1992).
and the then processed to oil. Rural area cottage industries use
the village traditional method of extracting palm oil which
involves washing pounded or digested palm fruits (Plate 8),
mash in warm water and hand squeezing to separate fibre and
nuts from the oil/water mixture. A colander, basket or a
vessel with fine perforated holes in the bottom is used to filter
out fibre and nuts. The wet mixture is then put on the fire and
brought to a vigorous boil. After about one or two hours,
depending on the volume of material being boiled, the
firewood is taken out and the boiled mixture allowed to cool.
On cooling to around blood temperature, a calabash or
shallow bowl is used to skim off the palm oil. Meanwhile the
flow chart for palm oil production (Fig 1) is systematic and
this allows for effective production of oil and extraction of
other essential market resource of the palm.
Palm Oil (Elaeis guineensis) Production
The primary unit of production of the palm oil industry is the
farm where the oil palm tree is cultivated to produce palm
fruits. The palm fruits from the trees are harvested (Plate 7)
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Adeoye, I.A.* and Bhadmus, H.B.
Socio-Economic Contributions of Cottage Industries to Rural Livelihood in Nigeria Page 128-133
Plate 7: Harvesting Palm fruits
Plate 8: Palm fruit digestion
Fig 1: Palm Oil Processing Unit Operations
Small-scale mills simply pack the produced oil palm in used
petroleum oil drums or plastic drums and store the drums at
ambient temperature. At this point, the stored palm oil (Plate
9) can be consumed by the family or taken to local markets
for sale so as to make earning (Gustafsson, 2007). The socioeconomic opportunity attached to oil palm production comes
from three main areas: the demand for palm oil, the
availability of palm nut trees and suitable climate, and the
availability of labor. The local demand for palm oil is
substantial. It is estimated that for every five people in
Nigeria, perhaps two liters of palm oil or more are consumed
each month for cooking (Gustafsson, 2007). It has been
reported that, although once a significant exporter of palm oil,
Nigeria is now an importer, and it is possible that some of this
demand may be currently supplied by foreign imports
(Gustafsson, 2007).
Plate 9: Stored Palm oil
African Locust Bean
Parkia biglobosa is known as the African locust bean tree
Africa locust bean is widely recognized as an important
indigenous fruit tree in Nigeria. The Tree has nutritional,
economic and ecological importance. Nutritionally, the seeds
of the tree when processed were widely utilized in North-
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Adeoye, I.A.* and Bhadmus, H.B.
Socio-Economic Contributions of Cottage Industries to Rural Livelihood in Nigeria Page 128-133
Central Nigeria as condiments. This finding corroborates the
earlier ones by Oyerinde and Daramola (2004) that the seeds
of African locust bean tree are processed into a fermented
food condiment known as Iru, Dawadawa and Ogiri in the
Southern, Northern and Eastern parts of the country,
respectively. The fermented Parkia constituted an important
ingredient in most dishes, soups and stews made to
accompany porridges, rice and cooked yams and cassava in
the region. This means that the fermented food condiment is a
crucial and widely consumed food of high nutritional value to
millions of Nigerians both in rural and urban areas.
The cottage industry in the villages can be best developed on
forest produce – wood, bamboo, weeds, reeds and grasses.
These resources, being renewable resources are ideal raw
materials for development of this cottage industry on
sustained basis. With the development of wood based
industry in the rural sector, the farmers growing trees can be
assured of remunerative price for their produce at their door
step itself, instead of running to city markets and falling
under the trap of middle men and commission agents. This
will ensure their continued interest in agroforestry. This is
necessary for keeping alive the tempo of tree growing which
is necessary for the very survival of humanity (Tee et al,
2009). The types of cottage industry which can be developed
in rural areas are furniture, door and window, tool handles,
agricultural implements, packing cases, match splints,
turnery, carving, mat, e.t.c. There are numerous such
examples where a profitable cottage industry can be run in the
villages and generate gainful employment opportunities in
rural sector. Thus plantation wood and bamboo etc. based
cottage and small scale industry can help rural masses for
their sustainable development and bring prosperity in the
rural area (Tee et al, 2009).
Economically, African locust bean tree provided income and
employment to many household members in the region.
Trading activities in the raw seeds, the fermented food
condiment (variously known as Iru, Dawadawa and Ogiri,),
charcoal, and firewood among others provided reasonable
income and employment. For instance, the weekly net income
accruing to the people from sales of raw seeds, fuelwood and
charcoal produced from African locust bean tree was N3780,
N1120 and N720 respectively. These values are equivalent to
USD30, USD9 and USD7, respectively (Tee et al, 2009). The
result agrees with that of Breman and Kessler (1995).
Fundamentally, net incomes from the above trading activities
revealed that the people in these businesses were living above
poverty line of $370 per year (Hauser and Pilgram, 1999).
Mortar and Pestle
Prosopis africana is generally known as Iron wood Tree in
Nigeria. It is a common tree of the savannah region;
belonging to the family Minosoceae. It is variously called;
Kiriya (Hausa), Ayan (Yoruba), Ubwa (Igbo) and Gbaaye or
Kpaaye (Tiv). Iron wood tree is widely utilized in Nigeria and
other African countries. Its utilization serves as source of
income/employment as well as ecological services. Most
mortal and pestles are made from Prosopis africana because
of its durability and ease to carve. Mortar and Pestle produced
are sold in the market (See Plate 10 and 11) and at homes, as
the case may be, to generate income. Arts and craft work
(carving) and trading offered employment services to many
people living in the rural area.
Carpentry and Furniture Firm.
Wood-based cottage industry is a viable profitable business if
done properly on Commercial basis. Demand for Wood-based
articles is growing considerably as socio-economic
development is taking place. More and more people are
becoming aware of the beauty and delicacy of the wood-made
articles which are products of small scale carpentry and
furniture work for a number of its intrinsic value in
comparisons to metal-made. Daily use, official requirements,
weddings, and other such social customary gathering events
are incomplete without wood items. Wood also has more
aesthetic value than the ore (Tee et al, 2009).
Plate 10: Mortar
Plate 11: Pestle
Benefits of Cottage Industries
The benefits which can be derived from the cottage industries are summarized in the figure 2 below:
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Adeoye, I.A.* and Bhadmus, H.B.
Socio-Economic Contributions of Cottage Industries to Rural Livelihood in Nigeria Page 128-133
Figure 2: Benefits of Cottage industries
Oil Industry . Almqvist and Wiksell International. Pp.
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CONCLUSION
Despite high demand in products from cottage industries, the
attention on these industries is limited or being ignored
especially in rural communities. Although cottage industry is
not the sole panacea for poverty alleviation, it stands to
reduce unemployment creating a means for sustainable
livelihood in both urban and rural communities while
reducing the pace of rural dwellers deserting their traditional
means of livelihood. If this industry dies, government will
have to spend heavily in providing employment even when a
little effort can help in the conservation of cottage industry.
These cottage industries can be harnessed and upgraded to
help contribute enormously to rural livelihood and also
reduce poverty. The approach should be non-formal, rooted in
the local community, linked to practical learning and matched
with local supply and demand. Cottage industries were
identified as sustaining employment and incomes in the face
of rising populations and threats of unemployment, providing
seasonal occupation for farm workers during the less busy
time of the year, contributing to equality and poverty
alleviation by increasing the incomes of the poor. Therefore,
neglecting the traditional technology-based rural enterprises
(cottage industries) or allowing them to go extinct because of
the encroachment of modern technology, is a clear threat to
rural linkages and ultimately to rural development.
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